Manila: The five-year Treasury bond (T-bond) yield fell Tuesday on strong demand and expectations of another central bank rate cut, the Bureau of the Treasury (BTr) reported. The average rate of the bond, with a remaining term of four years and 11 months, dropped to 5.557 percent.

According to Philippines News Agency, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort noted this is below Monday's secondary market rate of 5.6344 percent and the 5.71 percent rate from the January 13 auction. He attributed the decline to anticipation of a Bangko Sentral ng Pilipinas (BSP) rate cut in February.

The BTr offered PHP30 billion of the bond, which was fully awarded, with total tenders reaching PHP164.8 billion. Due to strong demand, the BTr also offered PHP20 billion through the tap facility from PHP142.36 billion in tenders.